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Over the past month, we’ve seen plenty of speculation about what President Trump’s 10 percent universal tariffs and looming reciprocal tariffs could mean for consumers. While the stock market has taken the brunt of the impact so far, and many shoppers might not be noticing a change in prices, that could all be coming to an end in the next couple of weeks.
On May 15, Walmart, which also owns Sam’s Club, presented its earnings for the first quarter of 2025. Even though revenue growth rose 2.5 percent in the first quarter, the retailer cited the tariffs—specifically those imposed on China—as something it will have to address during the second quarter.
“The immediate challenge is obviously navigating the impact of tariffs here in the U.S.,” said C. Douglas McMillon, Walmart’s President and CEO, during the earnings call. “We will do our best to keep our prices as low as possible…[but] we aren’t able to absorb all the pressure.”
Walmart Announces Plans To Raise Prices
The White House recently announced an agreement with China to temporarily lower the tariffs to 30 percent, down from the 145 percent at their highest. However, even with the 90-day agreement in place, Walmart’s Chief Financial Officer John David Rainey said that the tariffs are “still too high” during the earnings call. In light of that, McMillon told investors that the bottom line is “higher tariffs will result in higher prices.”
For the brand committed to “everyday low prices,” a price hike is not something that customers will be excited to hear, but Rainey told CNBC that the tariffs are “more than any supplier can absorb.”
And the changes are coming sooner than you'd think. Rainey said customers can expect to see price increases as early as the end of May and “much more in June.”
Even though the tariffs on China seem to be having the largest impact on Walmart and its prices, it’s not just Chinese-imported products that will see an increase. It’s nearly everything in the store—including food.
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President Trump responded to the announcement with a post on Truth Social, where he suggested Walmart should absorb the cost of the tariffs rather than charging its customers more.
Walmart has promised that it won’t simply “pass on” the extra tariff cost to every product just to save a buck—especially when it comes to food, since customers have already been experiencing rising food costs. But, if those foods come from a country where import tariffs can’t be avoided, like “bananas, avocados, [and] coffee,” you might notice a price increase.
Walmart has not yet announced how much it will raise prices in its flagship stores or in Sam’s Club locations, but unless the U.S. and Chinese governments come to an even lower tariff agreement, it looks like your next Walmart shopping trip could be bit pricier.
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